REG-ECR Minerals plc Danglay Gold Project shareholding increases to 90%

ECR MineralsAnnouncement

22/02/2023 07:15

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Danglay Gold Project shareholding increases to 90%

 

ECR MINERALS plc

(“ECR Minerals”, “ECR” or the “Company”)

Danglay Gold Project shareholding increases to 90%

ECR Minerals plc (LON: ECR), the gold exploration and development company
focused on Australia, is pleased to announce that its shareholding in
Cordillera Tiger Gold Resources, Inc (“Cordillera”), owner of Exploration
License EP-006 at the Danglay gold project in the north of the Philippines,
has increased from 70% to 90%.

This increase was due to the conversation of an intercompany loan of
28,354,525 pesos (approx. £420800) which was owed by Cordillera to ECR. The
loan was in relation to certain fees and explorations expenses and was
satisfied by the issue of 6,666,667 new ordinary shares in the Company.

Following this issue ECR holds 8,999,996 Ordinary Shares in Cordillera
representing 90% of its issued share capital.

ECR CEO Andrew Haythorpe added: “Although I have yet to visit the
Philippines and view the Danglay Gold project first hand, I am very much aware
of the opportunity and nascent value it represents for the ECR asset
portfolio.”

“In my strategic update last July, I stated that all options to monetize and
develop non-core assets would be considered. This issue of equity brings our
holding in Cordillera Tiger to 90%, and as a result, the Board now expects to
be able to take full advantage of opportunities that may arise in regard to
the development of the Danglay Gold project. I look forward to reporting back
on further progress.”

Danglay Project Background

In July 2021, Cordillera Tiger successfully renewed Exploration License EP-006
at the Danglay gold project for a further two years. This licence is located
in an established gold and copper mining district in the north of the
Philippines. ECR initially held a 25% interest in the Danglay gold project
through Philippines corporation Cordillera Tiger Gold Resources, Inc. under an
Exploration Permit. The issuance of the 25% shareholding in Cordillera Tiger
to the Company had been delayed since 2016, largely due to a court case filed
by an individual who is a minority shareholder and former director of
Cordillera Tiger. This matter was successfully resolved (see announcement
dated July 30(th) 2021)
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.investegate.co.uk%2Fecr-minerals-plc--ecr-%2Fbus%2Fcordillera-tiger-gold-resources-renews-exploration-license-ep-006-at-danglay-gold-project--n-philippines%2F20210730162100Z2689%2F&esheet=53335543&newsitemid=20230221005915&lan=en-US&anchor=%28see+announcement+dated+July+30th+2021%29&index=1&md5=899fe782c87d39589969ff4a4d19f29e)
.

On April 27(th) 2022, Cordillera Chairman & Vice President Ludevico
Estacio agreed to sell his shares (1,499,996 in total) to ECR Minerals for a
consideration of 1,499,996.00 Philippine pesos (approx £22,000), which ECR
paid for in cash (see announcement dated April 27(th) 2022 here
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fpolaris.brighterir.com%2Fpublic%2Fecr_minerals_plc%2Fnews%2Frns%2Fstory%2Fwkn1z2w&esheet=53335543&newsitemid=20230221005915&lan=en-US&anchor=here&index=2&md5=1dd4799a4c300644adcc5c6f57f056d7)
). Following the acquisition, ECR held 2,333,329 Ordinary Shares in Cordillera
representing 70% of its issued share capital.

The share issue announced today brings ECR’s shareholding in Cordillera
Tiger to 8,999,996 Ordinary Shares (90%).. The Board believes that the
political climate for the minerals industry in the Philippines continues to
improve and considers that the Danglay gold project has potential for further
exploration to build upon the existing inferred mineral resource estimate of
63,500 ounces of gold at 1.55 g/t gold. This resource was reported by ECR in
2015 to the Canadian NI43-101 standard (see announcement dated 15 December
2015), based on exploration carried out at Danglay by ECR during 2014 and
2015. In addition to the resource, an NI43-101 target for further exploration
(conceptual potential quantity and grade of mineralisation expressed as
ranges) of 95,000 to 170,000 ounces of gold at 5 to 7.5 g/t was reported.

The Directors recognise that this resource statement is not prepared to a
standard currently recognised by AIM and accordingly this information is
provided for guidance purposes only and is subject to further work,
verification and updating. In addition, targets for further exploration are
not mineral resource estimates, are conceptual in nature, are used where there
has been insufficient exploration to define the target as a mineral resource,
and where it is uncertain if further exploration will result in the target
being delineated as a mineral resource.

In the year to December 2021, Cordillera Tiger Gold Resources Inc recorded no
revenues or profits, and a deferred mine exploration cost of 27,800,747
Philippine pesos (approx £406,000) (audited).

FOR FURTHER INFORMATION, PLEASE CONTACT:
 ECR Minerals plc                                                                                                                                                                                                                                        Tel: +44 (0) 20 7929 1010  
 David Tang, Non-Executive Chairman                                                                                                                                                                                                                                                 
 Andrew Haythorpe, CEO                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                    
 Email: info@ecrminerals.com (mailto:info@ecrminerals.com)                                                                                                                                                                                                                          
 Website: www.ecrminerals.com                                                                                                                                                                                                                                                       
 (https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ecrminerals.com%2F&esheet=53335543&newsitemid=20230221005915&lan=en-US&anchor=www.ecrminerals.com&index=3&md5=aa6c68243e94779169113a758fada753)                                                              
                                                                                                                                                                                                                                                                                    
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 Nominated Adviser                                                                                                                                                                                                                                                                  
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 SI Capital Ltd                                                                                                                                                                                                                                          Tel: +44 (0) 1483 413500   
 Broker                                                                                                                                                                                                                                                                             
 Nick Emerson                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                    
 Novum Securities Limited                                                                                                                                                                                                                                Tel: +44 (0) 20 7399 9425  
 Broker                                                                                                                                                                                                                                                                             
 Jon Belliss                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                    
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 Public & Investor Relations                                                                                                                                                                                                                                                        
 Alan Green                                                                                                                                                                                                                                                                         


ABOUT ECR MINERALS PLC

ECR Minerals is a mineral exploration and development company. ECR’s wholly
owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has
100% ownership of the Bailieston and Creswick gold projects in central
Victoria, Australia, has six licence applications outstanding which includes
one licence application lodged in eastern Victoria. (Tambo gold project). MGA
is currently drilling at the Bailieston Blue Moon Project (EL5433) and
undertaking geochemical exploration on the Creswick (EL6148) project and has
an experienced exploration team with significant local knowledge in the
Victoria Goldfields and wider region.

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd
(“LUX”) which has three approved exploration permits covering 946 km(2)
over a relatively unexplored area in Queensland, Australia.

Following the sale of the Avoca, Moormbool and Timor gold projects in
Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the
subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd
(TSX-V: LVX), Mercator Gold Australia Pty Limited has the right to receive up
to A$2 million in payments subject to future resource estimation or production
from projects sold to Fosterville South Exploration Limited.

ECR holds a 90% interest in the Danglay gold project; an advanced exploration
project located in a prolific gold and copper mining district in the north of
the Philippines, which has a 43-101 compliant resource. ECR also holds a
royalty on the SLM gold project in La Rioja Province, Argentina and can
potentially receive up to US$2.7 million in aggregate across all licences.



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ECR Minerals plc


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